XRP News Today: Ripple's RLUSD Stablecoin Gains Traction, Sparking Debate Over XRP's Future Role

Ripple’s introduction of the rlusd stablecoin has sparked discussions within the blockchain community about the future role of XRP. While Ripple maintains that RLUSD and XRP serve different purposes within its ecosystem, some analysts are skeptical, questioning whether RLUSD’s growing influence could overshadow XRP.

Since its launch in December 2024, RLUSD has seen rapid adoption, recently being listed on a major U.S.-based exchange. This move has significantly boosted its market capitalization and daily trading volume, generating excitement among investors and the broader Ripple community.

The crypto community is divided over the implications of RLUSD’s rise. Some influencers suggest that RLUSD and XRP are complementary, with RLUSD offering stability due to its U.S. dollar peg, while XRP’s strength lies in its speed and efficiency. This combination allows both tokens to function seamlessly within Ripple’s payment system.

Ask Aime: "Can XRP's new stablecoin, RLUSD, take off in the U.S. market?"

However, skepticism persists. Blockchain analyst Elena Schoen has expressed concerns about a potential shift in XRP’s function, noting that XRP is now primarily used as a transaction fee mechanism on the XRP Ledger. She argues that RLUSD is taking on key roles, including liquidity management, cross-border settlements, institutional transactions, and facilitating multiple fiat currencies, which could reduce XRP’s utility.

Ripple’s decision to integrate RLUSD into Ripple Payments by the end of 2025 is a strategic move. CEO Brad Garlinghouse has described RLUSD as the new “gold standard” for institutional payments, emphasizing its ability to mitigate volatility in cross-border transfers. This shift appeals to financial institutions wary of XRP’s price fluctuations, raising questions about XRP’s ongoing relevance as RLUSD’s prominence grows.

Ripple’s leadership has responded to community concerns, asserting that RLUSD does not undermine XRP’s role. President Monica Long has stressed that the platform’s dual-token approach is intentional, allowing clients to choose based on their priorities—speed or stability. CTO David Schwartz has clarified that RLUSD is not a substitute for XRP, highlighting XRP’s decentralized attributes and technical features.

Garlinghouse reinforced this view, explaining that RLUSD acts as a digital representation of fiat, while XRP continues to be an indispensable, fast, and borderless bridge asset within the XRPL’s decentralized ecosystem. As RLUSD continues to carve out its niche, the coexistence of the two assets within Ripple’s broader vision remains an evolving narrative. While Ripple aims for balance, market forces and adoption rates will likely dictate the long-term relationship between RLUSD and XRP.